Edenville Energy PLC Bulk Sampling Update (8770K)
September 27 2016 - 1:01AM
UK Regulatory
TIDMEDL
RNS Number : 8770K
Edenville Energy PLC
27 September 2016
27 September 2016
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Bulk Sampling Update
Edenville Energy plc, the Company developing an integrated coal
to power project in western Tanzania, is pleased to announce the
current bulk sampling programme at the Rukwa Coal to Power Project
site has been completed.
A total of approximately 20 tonnes has been extracted from open
pit areas at three different locations in Mkomolo and Namwele. The
material has been processed according to Tanzania export
regulations and is currently being shipped to SGS Laboratories in
Johannesburg, South Africa.
Key Points
-- Bulk sampling extraction of 20 tonnes of samples completed
and shipped to laboratories in South Africa
-- Sampling shows extensive near surface coal which can enable
rapid and low cost development of the mining operation on a
commercially viable basis
-- Company is looking at opportunities for early production in
conjunction with mine mouth power generation
Rufus Short CEO of Edenville Energy plc said: "We are extremely
encouraged after seeing the near-surface coal seams exposed when
opening up the areas for bulk sampling. Material is now on its way
to South Africa and we expect to start receiving results from the
testing in October. Extensive coal measures exist at surface which
provides the Company with an opportunity to rapidly advance the
commercial production at our Rukwa site, which can be done in
conjunction with the development of mine mouth power
generation.
"The Rukwa project already has a mining licence and
environmental certificate in place and we are working on options to
assess the financial viability of a phase 1 operation to place the
project into commercial production. As such we are in advanced
discussions with several parties connected with both extraction of
the coal and sales of the product and will update our shareholders
at the earliest opportunity. Early mining of the deposit will also
provide "proof of concept" for the coal fuel source component of
the Company's Coal to Power Project and provide further reassurance
beyond the 173 million tonnes of JORC compliant resource that we
have. This is an extremely exciting time for the Company and we
hope to provide updates at regular intervals over the next quarter
on our progress in the development of the deposits at Mkomolo and
Namwele."
Bulk sampling and test work
The bulk sampling involved the excavation of three box cuts,
each approximately 25 metres in length along the strike of the two
coal outcrops at Mkomolo and near the previous workings at Namwele.
A total of three seams were extracted for sampling.
The samples will undergo test work in South Africa under the
supervision of P.C. Meyer Pr.Sci.Nat, a coal consultant who was the
author of the JORC compliant Rukwa Coal Resource Statement in 2013
which delineated a resource of 171 million tonnes of coal in the
Measured and Indicated categories. Mr Meyer was present on site for
the extraction process and supervised the quality assurance
necessary to provide the level of confidence required in the test
results.
The results we will receive shall include, but not be limited
to, the following for the individual seams sampled: a) size
analysis; b) raw qualities, c) full wash results; d) plant design
parameters.
The method and parameters for the analysis and wash testing have
been reviewed by several groups including our consultants, SMS, a
contract miner who also provides and operates wash plant equipment
who has been on site, and a world class power plant EPC contractor,
who has also previously carried out a site inspection. All parties
consider the parameters and level of testing suitable and that the
results will provide the basis to design and construct the mine,
and wash plant for both power plant feed and commercial sales. The
coal analysis can also feed into future design parameters for any
planned power plant.
Suitable washing of raw coal produces a consistent quality that
is often necessary for customer's applications. The Company's focus
is very much to prove the viability of producing a consistent
product whether this is for the Coal to Power Project or commercial
third party sales.
Bulk sampling has taken place in parallel with assessing the
available options for commercial production and sales. Several
contract miners and a potential customer for the coal have been on
site over August and September to move this forward and we will
update the market as advancements are made.
Key points on the exposed coal to note are:
-- The surface seams contain good quality raw coal, previously
verified by the test pit programme completed in Q4 2014.
-- Bulk sample results will clarify suitable wash plant design
parameters, allowing this easily accessible coal to be optimally
processed for potential customer's requirements.
-- The coal is very close to surface, meaning opening up of
commercial mining can be rapid and does not require high levels of
pre production capital.
-- Because the coal is close to surface, little initial
stripping of overburden is required, ie: strip ratios of overburden
to coal are extremely low in certain areas, thus mining
(operational) costs can be minimised through low overburden
removal.
-- The opportunity to dig much of the overburden material freely
without applying drill and blast techniques will also allow mining
costs to be reduced.
A link to photographs of the sampling and coal can be accessed
here:
http://www.rns-pdf.londonstockexchange.com/rns/8770K_-2016-9-26.pdf
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney +44 (0) 20 3861
David Hignell 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring +44 (0) 20 3053
Heather Armstrong 8671
This information is provided by RNS
The company news service from the London Stock Exchange
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